Business Studies, asked by amar57, 1 year ago

what is financial risk why does it arise

Answers

Answered by nikitasingh79
3

SOLUTION :

Financial risk refers to the payment of financial commitment in the form of interest on long term borrowings and  repayment of such  borrowings. It arises due to terms and conditions laid down on loan agreements with the lenders.

 

Financial risk is the chance that a firm would fail to meet its payment obligations. It arises with higher use of debt.

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